Is the JPY exchange rate of 4.85 a low point or a high point? The correct way for Taiwanese people to exchange Japanese Yen

The NT dollar to Japanese Yen has already risen above 4.85, appreciating by 8.7% since the beginning of the year. Travelers and Yen investors are starting to get restless. But here’s the question: Is now a good time to exchange? What’s the most cost-effective way to do it? And after exchanging, what should you do next?

We will clarify the trend of the Yen exchange rate, compare the costs of five different currency exchange channels, and explore four value-added options after the exchange.

Is it worthwhile to exchange Yen now? Will the Yen exchange rate continue to rise?

Simply put: It’s worth it, but don’t exchange all at once.

As of December 10, 2025, the NT dollar to Yen rate reached 4.85, up 8.7% from 4.46 at the start of the year. This appreciation is significant for Yen holders—equivalent to getting about 0.39 more Yen per NT dollar exchanged now.

Three main factors supporting the Yen exchange rate:

1. The Bank of Japan’s imminent rate hike: Governor Ueda’s hawkish comments have pushed market expectations to 80%, with a 0.25 basis point increase to 0.75% expected on December 19 (a 30-year high), which is a key driver of Yen appreciation.

2. Global risk aversion demand: The Yen ranks among the top three safe-haven currencies (alongside USD and Swiss Franc). During market turbulence—such as the Russia-Ukraine conflict in 2022—the Yen appreciated 8% in one week.

3. NT dollar depreciation pressure: In the global rate hike cycle, Taiwan’s interest rate differential has narrowed, making Yen hedging and allocation a rational choice.

Future Yen exchange rate forecast:

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58. In the short term, it may rebound to 155, but medium to long-term predictions suggest it will stay below 150. This indicates the Yen will continue to appreciate against the USD, and the Yen exchange rate still has upward momentum relative to the NT dollar.

Investment advice: Enter gradually, avoiding exchanging everything at once. Data shows that in the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by tourism recovery and hedging needs, indicating market confidence in the Yen continues to grow.

Why exchange Yen? Travel, investment, and hedging—three needs in one

Exchanging Yen isn’t just for travel; there are three deeper values behind it.

Travel and daily expenses:

• Japan’s cash culture remains strong (credit card penetration only 60%), with most shopping in Tokyo, Osaka, and Hokkaido accepting cash only.
• Purchasing from Japanese online shops or auctions requires direct Yen payment.
• Study abroad and working holiday participants exchange in advance to avoid exchange rate fluctuations.

Financial investment perspective:

The Yen is one of the top three safe-haven currencies globally, with stable economy and low debt. More importantly, Japan’s ultra-low interest rate policy (0.5%) makes Yen a “financing currency”—many professional investors borrow Yen at low interest and invest in higher-yield USD (about 4.0% interest rate differential), creating arbitrage opportunities.

For Taiwanese investors, Yen exchange isn’t just for leisure; it can also hedge Taiwan stock market volatility. When global markets decline, the Yen often appreciates, protecting assets.

Five methods to exchange Yen and their cost comparison

Many think exchanging Yen is just going to the bank, but the exchange rate difference alone can cost you several cups of bubble tea. Here’s a comparison of the latest five channels, based on actual rates.

Option 1: In-person cash exchange

Bring NT dollars to a bank branch or airport counter to exchange for Yen cash.

Cost analysis: Using “cash selling rate” (1-2% worse than spot rate), overall cost is highest. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/Yen (roughly 4.85 Yen per NT dollar), plus handling fees (100-200 NT$ per transaction). For 50,000 NT$, total cost is about 1,500-2,000 NT$.

Bank cash Yen rates and fees comparison:

Advantages: Safe, reliable, full denominations (1,000, 5,000, 10,000 Yen), staff assistance available.
Disadvantages: Less favorable rates, limited operating hours (weekday 9:00-15:30).
Best for: Those unfamiliar with online operations or needing small amounts urgently at the airport.

Option 2: Online exchange + in-person withdrawal

Use online banking or app to convert NT$ into Yen and deposit into a foreign currency account. If cash is needed, withdraw at a counter or ATM.

Cost estimate: For 50,000 NT$, about 500-1,000 NT$ in total, saving 50% compared to in-person exchange. Better rates, but involves withdrawal fees (around 100 NT$ or more).

Process:

1. Log into bank app or online banking
2. Select “Foreign Exchange,” input amount
3. Complete transaction at the spot rate, Yen credited to foreign currency account
4. Withdraw cash at counter or ATM

Advantages: 24/7 operation, allows dollar-cost averaging, better rates.
Disadvantages: Need to open a foreign currency account, withdrawal fees apply.
Best for: Experienced users, those who also want to invest in Yen deposits (current annual rate 1.5-1.8%).

Option 3: Online currency settlement + airport pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date online. After transfer, bring ID and transaction notice to pick up.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via Taiwan Pay, only 10 NT$), with about 0.5% better rate. For 50,000 NT$, cost is about 300-800 NT$. Many airport branches (Taoyuan Airport has 14 Taiwan Bank branches, 2 open 24 hours), ideal for pre-trip planning.

Advantages: Better rates, often no fees, designated airport pickup, avoids banking hours.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch cannot be changed.
Best for: Planned travelers who want to pick up cash at the airport.

Option 4: Foreign currency ATM withdrawal

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, available 24/7, supports interbank transactions (NT$ account deduction fee only 5 NT$).

Fubon Bank’s foreign currency ATM allows withdrawal from NT$ account, limit of 150,000 NT$ per day, no exchange fee. About 200 ATMs nationwide, cost for 50,000 NT$ is roughly 800-1,200 NT$.

ATM withdrawal limits:

Important: From October 2025, many banks tighten fraud controls, with digital account limits reduced to 100,000 NT$/day. During peak times (like at airports), cash may run out early—plan ahead.

Advantages: Instant cash, high flexibility, low cross-bank fees.
Disadvantages: Limited denominations (fixed 1,000/5,000/10,000 Yen), cash shortages possible at peak times.
Best for: Those with no time to visit banks or needing urgent cash.

Quick comparison table of five exchange methods

Conclusion: For budgets of 50k-200k NT$, we especially recommend “online settlement + airport pickup” or “online exchange + ATM,” combining low cost and convenience.

Quick decision tree for Yen exchange

Are you a traveler?

• Yes → Use “Online settlement + airport pickup,” book 1-3 days ahead, pick up cash before departure
• No → Continue

Do you need cash?

• Yes → Use “Foreign currency ATM” (24/7 access)
• No → Continue

Do you want to invest in Yen?

• Yes → Use “Online exchange” into foreign currency account, then transfer to deposit or ETF
• No → Use “In-person cash” for small emergencies

After exchanging Yen, don’t let your money sit idle

The biggest mistake after exchanging Yen is “storing it and forgetting.” Yen is no longer just for travel pocket money; it can also be used for small-value appreciation investments.

Option 1: Yen fixed deposit (most stable)
Open a foreign currency account, deposit Yen online. Minimum 10,000 Yen, annual interest 1.5-1.8%. For one year, interest is about 300-360 Yen (~NT$60-72).

Option 2: Yen insurance policy (medium-term holding)
Cathay or Fubon offer Yen savings insurance, with guaranteed interest rates of 2-3%, usually tied for 5-10 years. Slightly higher risk but better returns.

Option 3: Yen ETFs (growth-oriented, suitable for dollar-cost averaging)
For example, Yuanta 00675U (tracking Yen index), can buy fractional shares via broker app, management fee 0.4%. Compared to deposits, Yen ETFs can benefit from exchange rate appreciation, suitable for bullish Yen outlook.

Option 4: Yen forex trading (swing trading)
Trade USD/JPY or EUR/JPY directly on forex platforms, capturing exchange rate fluctuations. Supports both long and short positions, 24-hour trading, small capital required, but higher risk.

FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate applies to physical cash (bills/coins), used in face-to-face transactions, usually 1-2% worse than spot. Spot rate is the market’s two-day (T+2) settlement rate, used for electronic transfers and foreign currency accounts, more favorable (close to international market price).

Q: How many Yen can 10,000 NT$ buy?
Based on Taiwan Bank’s December 10, 2025, rate (~4.85), 10,000 NT$ ≈ 48,500 Yen. Using spot rate (~4.87), about 48,700 Yen, difference only about 200 Yen (~NT$40).

Q: What to bring for in-person exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notice. Under 20 need parental consent; large amounts (>100,000 NT$) may require source declaration.

Q: When is the best time to exchange Yen?
No absolute “bottom,” but observe:
(1) When USD index falls,
(2) When Bank of Japan’s rate hike expectations rise,
(3) When global risk aversion increases.
Current 4.85 is reasonable; consider staggered entry rather than betting on the bottom.

Summary

Yen is no longer just travel pocket money; it’s also a hedge and small investment asset. Its rate continues upward amid global economic fluctuations, offering Taiwanese investors a rare hedging opportunity.

Whether you plan to visit Japan next year or want to hedge NT dollar depreciation by converting some funds into Yen, the key is to follow the principles of “gradual exchange + don’t leave it idle,” minimizing costs and maximizing gains.

Beginners are advised to start with the simplest options: “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer Yen into deposits, ETFs, or try forex trading based on needs. This way, you can enjoy more cost-effective trips and add a layer of protection during market turbulence.